Release Details

Halliburton Announces Third Quarter 2017 Results

HOUSTON--(BUSINESS WIRE)--Oct. 23, 2017--
Halliburton Company (NYSE:HAL) announced today income from continuing
operations of $365 million, or $0.42 per diluted share, for the third
quarter of 2017. This compares to income from continuing operations for
the second quarter of 2017 of $28 million, or $0.03 per diluted share,
and adjusted income from continuing operations for the second quarter of
2017 of $201 million, or $0.23 per diluted share, excluding a fair
market value adjustment related to Venezuela.

“We had a strong quarter and I am very pleased with our results.
Our North American business is hitting on all cylinders and our
international business proved resilient in a challenging environment.
These results demonstrate why Halliburton is the execution company,”
remarked Jeff Miller, President and CEO.

“Total company revenue was $5.4 billion, representing a 10% increase
compared to the second quarter of this year. Total operating income was
over $630 million, primarily driven by continued strengthening of market
conditions in North America and improved profitability in our Drilling
and Evaluation product lines. We outgrew our peers on a global basis
demonstrating that we are taking market share globally, and we generated
industry leading returns.

“The Completion and Production division revenue increased by 13% in the
third quarter and operating margins improved by 215 basis points,
despite the approximately 50 basis point negative impact of hurricane
Harvey. This was driven by improved activity and pricing throughout
North America land in our pressure pumping, completion tools and
cementing product service lines.

“Our North American revenue increased by 14%, significantly
outperforming the average sequential U.S. land rig count growth of 6%. I
am pleased with the progress we made this quarter towards our goal of
normalized margins in North America, demonstrating that our strategy is
working.

“Outside North America, our conservative outlook for the last several
quarters is proving accurate. Our international organization has shown
impressive control over their costs and their commitment to making the
toughest of markets sustainable.

“Halliburton is proud to be a service company and we believe our
investors and customers appreciate that. I am confident we are working
on the right things that create the most value and generate the highest
returns. Our strong competitive position is not purely a function of
geographic footprint. It is demonstrated in the depth of the products
and services that we provide to our customers and use to generate
industry leading returns for our shareholders,” concluded Miller.

Operating Segments

Completion and Production

Completion and Production revenue in the third quarter of 2017 was $3.5
billion, an increase of $405 million, or 13%, from the second quarter of
2017, while operating income was $525 million, an increase of $128
million. These increases were primarily due to improved utilization and
pricing throughout the United States land sector in the majority of our
product service lines, as well as contributions from our recent
artificial lift acquisition. Additionally, spring break-up recovery and
activity in pressure pumping and completion tools benefitted Canada.
Internationally, new contracts in Brazil and increased activity in the
Middle East improved results.

Drilling and Evaluation

Drilling and Evaluation revenue in the third quarter of 2017 was $1.9
billion, an increase of $82 million, or 4%, from the second quarter of
2017, while operating income was $180 million, an increase of $55
million. These increases were primarily due to increased drilling
activity in the Middle East, North America and Latin America. In the
Eastern Hemisphere, growth in our Consulting and Project Management
product line was partially offset by activity declines across Asia
Pacific.

Geographic Regions

North America

North America revenue in the third quarter of 2017 was $3.2 billion, a
14% increase sequentially, relative to a 6% increase in average U.S. rig
count. This improvement was driven primarily by increased utilization
and pricing throughout the United States land sector in the majority of
our product service lines, primarily pressure pumping, as well as higher
well completion and pressure pumping activity in Canada.

International

International revenue in the third quarter of 2017 was $2.3 billion, a
4% increase sequentially, resulting primarily from increased activity
across multiple product services lines in Latin America, and increased
pressure pumping services and drilling activity in the Eastern
Hemisphere.

Latin America revenue in the third quarter of 2017 was $530 million, a
4% increase sequentially, driven by increased activity in Argentina,
higher production group activity in Brazil and increased drilling
activity in Mexico. These results were partially offset by reduced well
completion activity in Venezuela.

Europe/Africa/CIS revenue in the third quarter of 2017 was $722 million,
a 6% increase sequentially, primarily due to improved utilization in the
majority of our product services lines in the North Sea and improved
drilling and well completion services in Russia and Nigeria. These
results were partially offset by reduced activity in Angola.

Middle East/Asia revenue in the third quarter of 2017 was $1.0 billion,
a 3% increase sequentially, primarily resulting from increased drilling
activity in the Middle East and project management activity in
Indonesia, partially offset by reduced activity and pricing across
Southeast Asia and lower project management activity in Iraq.

Selective Technology & Highlights

Halliburton announced the release of GeoTech HE™, a robust drill bit
that incorporates new features and materials to deliver enhanced
performance and increased reliability in today's high energy drilling
systems characterized by very high weight-on-bit and drilling torque.
Recent years have seen advances in drilling equipment and practices
that have enabled operators to significantly increase energy and
drilling speed to reduce costs. As a result, drill bits experience
higher forces that challenge traditional design and significantly
increase risk of damage. GeoTech HE bits are built to function in
these challenging conditions.

In August 2017, Halliburton held its annual LIFE event, the oil and
gas industry's premier business and technology conference, attracting
super majors, independents, national oil companies, service companies
and other participants from across the global exploration and
production value chain. This year's forum addressed the challenges
that companies face as they navigate a rapidly evolving landscape and
how digital technologies such as Internet of Things (IoT), cloud and
big data analytics are transforming the way business is done.

Halliburton and Microsoft announced plans to enter into a strategic
alliance to drive digital transformation across the oil and gas
industry. The relationship will combine the expertise of global
leaders in cloud and digital transformation and exploration and
production science, software and services. Both companies will
leverage and optimize Microsoft technologies in machine learning,
augmented reality, user interactions and Industrial IoT, as well as
Azure's high-performance infrastructure and built-in computing
capabilities to deliver tightly integrated solutions across the energy
value chain. As a first step in the alliance, Halliburton has made
DecisionSpace® 365 available on Azure, enabling real-time data
streaming from IoT edge devices in oilfields and the ability to apply
deep-learning models to optimize drilling and production to lower
costs for customers.

Sperry Drilling announced the release of Radian™ Azimuthal Gamma Ray
and Inclination Service, a geosteering solution that provides
real-time, high quality borehole images and continuous inclination
measurements. This information provides operators with enhanced data
to assist in the decision making of optimal well placement and better
reservoir contact for increased production and lower costs per BOE.

About Halliburton

Founded in 1919, Halliburton is one of the world's largest providers of
products and services to the energy industry. With over 50,000
employees, representing 140 nationalities in approximately 70 countries,
the company helps its customers maximize value throughout the lifecycle
of the reservoir – from locating hydrocarbons and managing geological
data, to drilling and formation evaluation, well construction and
completion, and optimizing production throughout the life of the asset.
Visit the company’s website at www.halliburton.com.
Connect with Halliburton on Facebook,
Twitter,
LinkedIn,
and YouTube.

NOTE: The statements in this press release that are not historical
statements, including statements regarding future financial performance,
are forward-looking statements within the meaning of the federal
securities laws. These statements are subject to numerous risks and
uncertainties, many of which are beyond the company's control, which
could cause actual results to differ materially from the results
expressed or implied by the statements. These risks and uncertainties
include, but are not limited to: the resolution of class action
lawsuits; indemnification and insurance matters; with respect to
repurchases of Halliburton common stock, the continuation or suspension
of the repurchase program, the amount, the timing and the trading prices
of Halliburton common stock, and the availability and alternative uses
of cash; changes in the demand for or price of oil and/or natural gas
can be significantly impacted by weakness in the worldwide economy;
consequences of audits and investigations by domestic and foreign
government agencies and legislative bodies and related publicity and
potential adverse proceedings by such agencies; protection of
intellectual property rights and against cyber-attacks; compliance with
environmental laws; changes in government regulations and regulatory
requirements, particularly those related to offshore oil and natural gas
exploration, radioactive sources, explosives, chemicals, hydraulic
fracturing services, and climate-related initiatives; compliance with
laws related to income taxes and assumptions regarding the generation of
future taxable income; risks of international operations, including
risks relating to unsettled political conditions, war, the effects of
terrorism, foreign exchange rates and controls, international trade and
regulatory controls and sanctions, and doing business with national oil
companies; weather-related issues, including the effects of hurricanes
and tropical storms; changes in capital spending by customers; delays or
failures by customers to make payments owed to us; execution of
long-term, fixed-price contracts; structural changes in the oil and
natural gas industry; maintaining a highly skilled workforce;
availability and cost of raw materials; agreement with respect to and
completion of potential acquisitions and integration and success of
acquired businesses and operations of joint ventures. Halliburton's Form
10-K for the year ended December 31, 2016, Form 10-Q for the quarter
ended June 30, 2017, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission filings discuss some of the important
risk factors identified that may affect Halliburton's business, results
of operations, and financial condition. Halliburton undertakes no
obligation to revise or update publicly any forward-looking statements
for any reason.

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Millions of dollars and shares except per share data)

(Unaudited)

Three Months Ended

September 30

June 30

2017

2016

2017

Revenue:

Completion and Production

$

3,537

$

2,176

$

3,132

Drilling and Evaluation

1,907

1,657

1,825

Total revenue

$

5,444

$

3,833

$

4,957

Operating income:

Completion and Production

$

525

$

24

$

397

Drilling and Evaluation

180

151

125

Corporate and other (a)

(71

)

(47

)

(114

)

Impairments and other charges (b)

-

-

(262

)

Total operating income

634

128

146

Interest expense, net

(115

)

(141

)

(121

)

Other, net

(23

)

(39

)

(26

)

Income (loss) before income taxes

496

(52

)

(1

)

Income tax (provision) benefit

(135

)

59

29

Net income

$

361

$

7

$

28

Net (income) loss attributable to noncontrolling interest

4

(1

)

-

Net income attributable to company

$

365

$

6

$

28

Basic and diluted net income per share

$

0.42

$

0.01

$

0.03

Basic weighted average common shares outstanding

872

862

869

Diluted weighted average common shares outstanding

873

864

871

(a) Includes an aggregate $42 million of litigation settlements and
one-time executive compensation charges in the three months ended
June 30, 2017.

(b) During the three months ended June 30, 2017, Halliburton
recognized a $262 million fair market value adjustment relating to
Venezuela.

See Footnote Table 1 for Reconciliation of As Reported Operating
Income to Adjusted Operating Income.

See Footnote Table 2 for Reconciliation of As Reported Income from
Continuing Operations to Adjusted Income from Continuing Operations.

(b) During the nine months ended September 30, 2016, Halliburton
recognized a $3.5 billion merger termination fee and an aggregate
$464 million of charges for the reversal of assets held for sale
accounting.

(c) Includes $104 million of costs related to the early
extinguishment of $1.4 billion of senior notes in the nine months
ended September 30, 2017, as well as $41 million of debt redemption
fees and associated expenses in the nine months ended September 30,
2016.

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Millions of dollars)

(Unaudited)

September 30

December 31

2017

2016

Assets

Current assets:

Cash and equivalents

$

1,898

$

4,009

Receivables, net

4,852

3,922

Inventories

2,444

2,275

Prepaid income taxes

53

585

Other current assets

897

886

Total current assets

10,144

11,677

Property, plant and equipment, net

8,432

8,532

Goodwill

2,685

2,414

Deferred income taxes

2,191

1,960

Other assets

2,338

2,417

Total assets

$

25,790

$

27,000

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

$

2,416

$

1,764

Accrued employee compensation and benefits

706

544

Short-term borrowings and current maturities of long-term debt

515

170

Other current liabilities

964

1,545

Total current liabilities

4,601

4,023

Long-term debt

10,423

12,214

Employee compensation and benefits

571

574

Other liabilities

949

741

Total liabilities

16,544

17,552

Company shareholders’ equity

9,217

9,409

Noncontrolling interest in consolidated subsidiaries

29

39

Total shareholders’ equity

9,246

9,448

Total liabilities and shareholders’ equity

$

25,790

$

27,000

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Millions of dollars)

(Unaudited)

Nine Months EndedSeptember 30

2017

2016

Cash flows from operating activities:

Net income (loss)

$

357

$

(5,616

)

Adjustments to reconcile net income (loss) to cash flows from
operating activities:

Depreciation, depletion and amortization

1,163

1,117

Working capital (a)

(502

)

609

Tax refund (b)

478

430

Payment related to the Macondo well incident

(368

)

(33

)

Impairments and other charges

262

3,189

Deferred income tax benefit, continuing operations

(183

)

(1,511

)

Other

250

(947

)

Total cash flows provided by (used in) operating activities (c)

1,457

(2,762

)

Cash flows from investing activities:

Capital expenditures

(934

)

(625

)

Payments to acquire businesses

(628

)

-

Proceeds from sales of property, plant and equipment

111

176

Other investing activities

(56

)

(73

)

Total cash flows used in investing activities

(1,507

)

(522

)

Cash flows from financing activities:

Payments on long-term borrowings

(1,633

)

(3,149

)

Dividends to shareholders

(469

)

(465

)

Other financing activities

92

163

Total cash flows used in financing activities

(2,010

)

(3,451

)

Effect of exchange rate changes on cash

(51

)

(53

)

Decrease in cash and equivalents

(2,111

)

(6,788

)

Cash and equivalents at beginning of period

4,009

10,077

Cash and equivalents at end of period

$

1,898

$

3,289

(a) Working capital includes receivables, inventories and accounts
payable.

(b) We received $478 million and $430 million in U.S. tax refunds
during the third quarter of 2017 and 2016, respectively, primarily
as a result of our carry back of net operating losses we recognized
in previous periods.

(c) Includes a $3.5 billion merger termination fee paid during the
second quarter of 2016.

HALLIBURTON COMPANY

Revenue and Operating Income Comparison

By Operating Segment and Geographic Region

(Millions of dollars)

(Unaudited)

Three Months Ended

September 30

June 30

Revenue

2017

2016

2017

By operating segment:

Completion and Production

$

3,537

$

2,176

$

3,132

Drilling and Evaluation

1,907

1,657

1,825

Total revenue

$

5,444

$

3,833

$

4,957

By geographic region:

North America

$

3,163

$

1,658

$

2,770

Latin America

530

415

508

Europe/Africa/CIS

722

744

679

Middle East/Asia

1,029

1,016

1,000

Total revenue

$

5,444

$

3,833

$

4,957

Operating Income

By operating segment:

Completion and Production

$

525

$

24

$

397

Drilling and Evaluation

180

151

125

Total

705

175

522

Corporate and other

(71

)

(47

)

(114

)

Impairments and other charges

-

-

(262

)

Total operating income

$

634

$

128

$

146

See Footnote Table 1 for Reconciliation of As Reported Operating
Income to Adjusted Operating Income.

HALLIBURTON COMPANY

Revenue and Operating Income (Loss) Comparison

By Operating Segment and Geographic Region

(Millions of dollars)

(Unaudited)

Nine Months Ended September 30

Revenue

2017

2016

By operating segment:

Completion and Production

$

9,273

$

6,614

Drilling and Evaluation

5,407

5,252

Total revenue

$

14,680

$

11,866

By geographic region:

North America

$

8,164

$

4,968

Latin America

1,501

1,432

Europe/Africa/CIS

2,005

2,317

Middle East/Asia

3,010

3,149

Total revenue

$

14,680

$

11,866

Operating Income (Loss)

By operating segment:

Completion and Production

$

1,069

$

22

Drilling and Evaluation

427

546

Total

1,496

568

Corporate and other

(251

)

(153

)

Impairments and other charges

(262

)

(3,189

)

Merger termination fee and related costs

-

(4,057

)

Total operating income (loss)

$

983

$

(6,831

)

FOOTNOTE TABLE 1

HALLIBURTON COMPANY

Reconciliation of As Reported Operating Income to Adjusted
Operating Income

(Millions of dollars)

(Unaudited)

Three Months Ended

September 30, 2017

June 30, 2017

As reported operating income

$

634

$

146

Impairments and other charges (a)

-

262

Adjusted operating income (b)

$

634

$

408

(a)

During the three months ended June 30, 2017, Halliburton recognized
a $262 million fair market value adjustment relating to Venezuela.

(b)

Management believes that operating income adjusted for impairments
and other charges for the three months ended June 30, 2017 is useful
to investors to assess and understand operating performance,
especially when comparing those results with previous and subsequent
periods or forecasting performance for future periods, primarily
because management views this excluded item to be outside of the
company's normal operating results. Management analyzes operating
income without the impact of this item as an indicator of
performance, to identify underlying trends in the business, and to
establish operational goals. The adjustments remove the effect of
this item. Adjusted operating income is calculated as: “As reported
operating income” plus "Impairments and other charges" for the three
months ended June 30, 2017. There were no such operating charges for
the three months ended September 30, 2017.

FOOTNOTE TABLE 2

HALLIBURTON COMPANY

Reconciliation of As Reported Income from Continuing Operations to

Adjusted Income from Continuing Operations

(Millions of dollars and shares except per share data)

(Unaudited)

Three Months Ended

June 30, 2017

As reported income from continuing operations attributable to company

$

28

Adjustments:

Impairments and other charges

262

Total adjustments, before taxes (a)

262

Income tax benefit

(89

)

Total adjustments, net of tax

$

173

Adjusted income from continuing operations attributable to company

$

201

Diluted weighted average common shares outstanding

871

As reported income from continuing operations per diluted share (b)

$

0.03

Adjusted income from continuing operations per diluted share (b)

$

0.23

(a)

Management believes that income from continuing operations adjusted
for impairments and other charges is useful to investors to assess
and understand operating performance, especially when comparing
those results with previous and subsequent periods or forecasting
performance for future periods, primarily because management views
the excluded items to be outside of the company's normal operating
results. Management analyzes income from continuing operations
without the impact of these items as an indicator of performance, to
identify underlying trends in the business and to establish
operational goals. The adjustment removes the effect of these items.
Adjusted income from continuing operations attributable to company
is calculated as: “As reported income from continuing operations
attributable to company” plus "Total adjustments, net of tax" for
the three months ended June 30, 2017. There were no such operating
charges for the three months ended September 30, 2017.

(b)

As reported income from continuing operations per diluted share is
calculated as: "As reported income from continuing operations
attributable to company" divided by "Diluted weighted average common
shares outstanding." Adjusted income from continuing operations per
diluted share is calculated as: "Adjusted income from continuing
operations attributable to company" divided by "Diluted weighted
average common shares outstanding."

Conference Call Details

Halliburton will host a conference call on Monday, October 23, 2017, to
discuss the third quarter 2017 financial results. The call will begin at
8:00 AM Central Time (9:00 AM Eastern Time).

Please visit the website to listen to the call live via webcast.
Interested parties may also participate in the call by dialing (888)
393-0263 within North America or (973) 453-2259 outside North America. A
passcode is not required. Attendees should log in to the webcast or dial
in approximately 15 minutes prior to the call’s start time.

A replay of the conference call will be available on Halliburton’s
website for seven days following the call. Also, a replay may be
accessed by telephone at (855) 859-2056 within North America or (404)
537-3406 outside of North America, using the passcode 63665948.